An uncertain week culminated in mixed performance on Friday as investors remained concerned about the future of Federal Reserve policy. The Dow rose, while the Nasdaq and S&P 500 ended lower.
Looking at individual stocks, DraftKings (NASDAQ:DKNG) posted a double-digit percentage gain after beating expectations with its latest earnings report. Strong results also boosted Kinsale Capital (KNSL), which rose to a 52-week high.
Looking at some of the larger falls of the day, Cognex (CGNX) and XP Inc. (XP) both tumbled in their respective quarterly updates.
outstanding winner
Investors bet heavily on DraftKings (DKNG) after the online gambling platform released a strong quarterly update. News of the earnings sent shares up more than 15%.
The company reported a lower-than-expected loss on revenue that exceeded analyst projections. Revenue increased 81% to $855 million, helped by the opening of new markets as online gambling becomes legal in more jurisdictions. The firm added that growth was also driven “by continued customer retention and monetization in existing states.”
DKNG forecast 2023 revenue of $2.85B-$3.05B and said it expected to post an EBITDA gain for fiscal 2024.
Fueled by the earnings news, DKNG rose $2.73 to end at $20.54. This added to a recent rally, with shares up about 49% over the past month. The stock rose 86% in 2023 and is now positive over a one-year period, posting a 19% gain in the last 12 months.
prominent decliner
The release of quarterly results boosted selling in Cognex (CGNX), with shares in the machine vision system maker falling 13%.
CGNX reported fourth-quarter earnings and revenue that missed expectations. The company also provided a pessimistic forecast.
“We are navigating through a challenging business environment. Some of our major e-commerce clients have halted most of their investments,” the company’s chief executive said. “By the end of 2022, we are seeing slower trends in our broader factory automation business, and we have seen this carry over into early 2023.”
CGNX was down $7.17 to reach $48.14. Shares had rallied earlier in the year, but Friday’s slide essentially wiped out those gains, leaving the stock nearly flat at its closing mark for 2022.
Over the course of a year, the stock is down 27%, though it remains well below its 52-week low of $40.20.
new notable high
Kinsale Capital (KNSL) soared on its quarterly report, with better-than-expected earnings and revenue propelling shares of the specialty insurance company to a new 52-week high.
The company reported fourth-quarter earnings that beat analyst consensus by more than 20%. Revenue also beat projections, increasing 32% to total $243 million.
Inspired by the earnings report, KNSL rose to a 52-week intraday high of $337.12. The stock pared its earnings before the close but still ended at $334.31, an advance of $42.30.
new notable low
XP Inc. (XP) fell nearly 19%, with a negative reaction to the company’s quarterly report dragging shares to a new 52-week low.
The Brazilian fintech reported net income that fell 21% from last year. This came as net income fell 3% and the EBT margin contracted.
“With a net addition of 1,200 employees in 2020 and 2,500 in 2021, we enter 2022 with a structure incompatible with the challenges we would face,” the company explained. “The sharp increase in interest rates caused by persistent inflation slowed down customer activity and the retail business in general.”
XP ended up trading at $12.91, down $2.98 on the day. The stock rose in January but has fallen for much of February. Friday’s action sent shares hitting a 52-week intraday low of $12.40.
Looking longer term, XP has fallen by around 62% over the past year.
For more on the day’s biggest winners and losers, head over to Seeking Alpha’s On The Move section.